GCC WAREHOUSING LANDSCAPE
The swift surge in E-commerce bodes well for the GCC Warehousing sector GCC regional supply chain network is expected to benefit from supply chain diversification initiatives
The importance of Warehousing Management Services (WMS) and its applications in logistics and supply chain, both regionally and globally cannot be underplayed. A key, crucial service, it essential for organizing and ensuring the smooth and streamlined inflow and outflow of goods from single or multiple storage and distribution points and for effectively monitoring a structured system for receiving, accounting and placing stocks in a warehouse.
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arehousing will continue to play its seminal role in the logistics and warehousing ecosystem. Automation and digitization in the warehouse will only increase exponentially as companies seek to make their supply chains agile and efficient. Warehousing is essential in supply chain management as goods are transported from the maker to end recipient. That is clearly a given. The benefits of warehousing in logistics indicate that if a warehouse operation is ineffective, the entire supply chain may be immobilized, for example, a lack of goods, delays, or blockages. All logistical efforts performed within the scope of a warehouse should avoid the warehouse from becoming a bottleneck of the supply chain. The purpose of warehouses is to support manufacturing processes, which can be accomplished by maintaining sufficient resources, materials, and packaging for production, allowing for uninterrupted output. Permanent access to packages allows for the systematic receipt of finished goods and delivery to
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the intended recipient. It’s worth noting that warehouses support marketing processes by providing constant access to resources required for the completion of a promotional action or the production of promotional sets. Global Supply Chain conducted an exclusive interview with Bijay Oram, Director, Supply Chain & Logistics Practice, Frost & Sullivan, who shared his professional insights and observations on the state and criticality of the warehousing sector in the GCC. Global Supply Chain (GSC): Briefly, what are key takeaways / broad observations of the Covid-19 effects and fallout on the GCC’s warehousing operations? Bijay Oram (BO): The Covid-19 pandemic-related restrictions such as self-isolation and social distancing have caused significant workforce shortages, affecting warehouse operations. Companies have opted to use automation and digitalization to overcome disruption in warehouse operations. The rapid increase in E-commerce sales has opened up opportunities for state-of-the-art
fulfillment centres across the major urban centers. Being a major trade hub in the East-West trade lane, the GCC regional supply chain network is expected to benefit from supply chain diversification initiatives of advanced countries in Europe and Asia. GSC: In your opinion, how much of the professional work environment / ecosystem in the warehouse changed as a result of the pandemic onslaught? BO: The industry has witnessed a series of changes. Firstly, a shift from lean manufacturing/just-intime (JIT) management method in favor of inventory strategies with adequate buffer stocks to minimize the costs associated with disruptions. Governments and the private sector continue to increase their focus on logistic/warehouse infrastructure-logistics parks, free zones, cold storage capacity expansion, and e-commerce fulfillment facilities. The industry is witnessing an Increased level of digitalization including adoption of automatic storage and retrieval systems, Automated Guided Vehicle (AGVs), and conveyor belts at warehouses
